SEBI Act – In order to proper regulation and development of securities market in India, SEBI Act is introduced. It is referred as Securities and Exchange and board of India Act.
SEBI Act 1992
SEBI Act has basically divided into 7 chapter and 35 Section.
This Act – SEBI Act 1992
Enforceable from 30th January 1992
Effect to all India
2(a) – Board
2(b) – Chairman
2(c) – Existing Securities Exchange Board
2(d) – Fund
2(da) – IRDA
2(fa) – PFRDA
3(1) – Central Govt appoint – By notification – SEBI
3(2) – a corporate body – a common seal, perpetual succession, – with power subjected to provision of this Act – to acquire, hold and disposed of property, both movable and immovable, and to contract, and shall, b the said name, sue or be sued.
3(3) – Head office – Bombay
3(4) – the Board may appoint offices at another place in India.
(1) – a chairman, two for finance from Central govt, one from RBI, 5 others (at least 3 should be whole-time), –: appointed by Central govt. [1+2+1+5=9]
Terms of offices for5 others member – as prescribed – Central govt can terminate his service by serving not less than 3 months’ notice in writing or three months’ salary and allowances in lieu thereof,
Or Chairman or the 5 members have right to relinquish the office at any time, before expiry of service by serving three month’s notice in writing.
at any time has been, adjudicated or insolvent
b) unsound mind or stands sp declared by a competent court.
c) convicted of an offence, moral turpitude
d) abused his position
Provided that no member – removal – without given reasonable opportunity of being heard the matter.
member- have any direct/indirect pecuniary interest – not take part in such meeting.